Paying yourself through the llc
Run your LLC as an SCorp - that's what we do and then we are able to have a group insurance policy and payroll.
Talk to your accountant. It's not hard to pay yourself through a single member LLC since it's essentially pass through accounting but you want to make sure you do it in a way to avoid getting taxed twice on the $$
Just make sure to keep track of it. The simpler better, ask if it’s better to pay yourself a salary so it’s predictable accounting or in large one-time increments.
You need to talk to your tax professional.
An LLC can be a single member disregarded LLC- in which case you're prohibited from taking formal payroll via a w2. In this circumstance you can typically just withdraw or contribute funds as needed.
An LLC can have multiple people and be a partnership in which case you can't receive payroll or w2- it's distributions or guaranteed payments.
An LLC can elect to be an S corp - in which case it NEEDS to pay you via payroll.
However just blindly changing to an S corp is terrible advice because S corporations aren't typically a good option for rentals and we don't know what you're doing with your business.
@George Makris what type of LLC?
@Natalie Kolodij, advice is spot on. except in VERY specific and limited circumstances, running rental through an S corporation adds an additional layer of complications and MAY cause more taxation. However, in the very limited circumstances too complicated to go into here, the payroll aspect of the S corporation may allow a high income earner to pay himself enough to decrease his taxes via (1) payment into a retirement account and or (2) qualify for the 20% write-off for unincorporated businesses. Although an S corp is a business, it is a pass through entity and treated as such under Federal tax regs.
@Account Closed said. She’s always spot on, and the fact she’s a CPA makes it legit not just my layman’s opinion and understanding.
@George Makris I was advis
ed by a real estate attorney and asset protection lawyer to run it as a s Corp is the best way!